AAVE’s community members voted to favor a momentarily pause of Ethereum borrowing on the protocol. The August 30 to September 2 vote had members supporting the halt because of the anticipated Merge.
Blockchain analytic firm Messari discovered that crucial ecosystem metrics grew on September 5 and 11, regardless of the mentioned suspension. The recently revealed AAVE Weekly Update confirmed these developments.
The ‘Ghost’ Protocol Noting Some Growth
Moreover, Messari discovered the total Ethereum utilization increased by 9.3% between September 5 and 11, regardless of the ETH borrowing pause. That’s because protocol users sourced for Ether loans via other alternatives, including Aave 2 and Ave 3, deployed on Avalanche and Polygon chains.
Moreover, the protocol’s Ethereum revenue increased by 80% in that timeframe. Meantime, the project witnessed a 5.4% jump in liquidity within the platform. The lending protocol saw liquidity soaring from $10.3B to $10.8B between September 5 and 11, recorded on September 4 and August 29, respectively.
Furthermore, the overall revenue between September 5 and 11 hovered at $3.5 million. That accounts for a 28.1% uptick from $2.7 million between August 29 and September 4. Meanwhile, WETH (wrapped Ethereum) was the most used asset class on the lending site during the under-review timeframe. WETH led other tokens with a 67.7% utilization rate.
That reflected a 16% uptick from the 58.4% utilization rate recorded within that timeframe. Also, wrapped Ethereum led all Aave-based asses in revenue in the phase under review. USDC followed with $722,000 in total revenue between September 5 and 11. Meanwhile, USD dominated the deposit balance on Aave, with its 32.7% share.
What of AAVE?
Coinmarketcap data showed the protocol’s governance token gained 3% during the analyzed timeframe. Meantime, AAVE traded at $91.22 during this publication. The altcoin dropped 1% within the past seven days. Meanwhile, AAVE lost 2% within the previous day.
Nevertheless, Coinmarketcap data confirmed a substantial trading volume rally in that period. The metric gained 66% at this writing. Remember, this divergence between asset prices and trading volume suggests buyer exhaustion. Thus, further price dips remain imminent.